Six years after it was unveiled, one of Newcastle’s prized beachfront assets has been listed for sale.
Merewether Surfhouse hit the market on Thursday and is being sold through an expressions of interest campaign that is expected to attract international attention.
Colliers International’s Adam Leacy and Chris Chapman are marketing the tri-level building which offers cafes, a function centre, restaurant and bar.
It provides uninterrupted views of Newcastle’s coastline and is being marketed as “a world-class community, tourism and recreational facility to the broader community of Newcastle and its visitors”.
The building is fully leased until 2036 with a 25-year option. It has a net income of approximately $909,950.
“To have a guaranteed 19 years remaining on the lease with an option for another 25 years is pretty significant and rare,” Mr Leacy said.
“Interest will be local, national and international.
“Newcastle, across the board, is now on everyone’s radar because of the infrastructure coming into the city.
“If you look at the Eastern seaboard of Australia, this is pretty special in terms of what is on offer. It’s beachfront and it’s got the one tenant across the whole building who are third-generation business people.”
The $5 million Merewether Surfhouse was developed in 2011 by the Sailors’ Rock consortium. Newcastle businessman Keith Stronach led the consortium.
The new building replaced the original art deco bathing pavilion which was erected circa 1937 but became a blight on the landscape after being damaged in the 1989 earthquake.
After being closed and declared unsafe in 1995 the original building decayed into an ailing eyesore.
The development plans drew public concerns over excessive height, traffic congestion and loss of public space.
But since being unveiled it has become one of the most popular hospitality venues in Newcastle.
Weddings were booked solid months before construction had even been completed.
“We are very proud of this landmark asset and believe that now is the right time to divest of the property as it’s been quite a journey starting from the initial ‘idea’ phase through to development and delivery of project,” Mr Stronach said in a written statement.
“The fact that many of our syndicate partners are made up of local Merewether investors gives me great pleasure to be able to represent the local stakeholders in delivering a public domain that is dear to their hearts.”
Expressions of interest close December 15.
Keep up with Commercial Real Estate news.